Page 18 - The Edge - Summer 2019

SPRING CONFERENCE WRAPUP

By Don Harris

How to Cope with the ‘Dirty Dozen’

Property Damage Claims
David Frandsen Vince Scarfo

Water damage, by far, results in the most claims for property protect against hail. Much of the wind damage involves awnings
damage to Arizona’s public schools. erected over playgrounds. “They get torn to shreds,” he said.
In a breakout session at AASBO’s Spring Conference, David It’s important to check roofs for debris, which can damage cars
Frandsen, representing Arizona School Risk Trust, Inc., and Vince parked below on a windy day, he said. “Make sure your people are
Scarfo, Safety Manager, Phoenix Union High School District, identified doing what they say they’re doing,” he said. “You have to get on your
the so-called “Dirty Dozen” – the top 12 property claims for schools roof.”
based on dollar amount during the past 10 years. Worst freeze cold weather claims, averaging 12 a year, actually
Listed in order they were: water (not flood); fire; hail; wind; occur in parts of the state not prepared for cold weather, Frandsen
freezing (cold weather); theft/pilferage; vandalism; mold; lightning; said. Several years ago, pipes in every toilet froze in every building in
settlement/sinking; electrical/mechanical malfunction; and vehicle. a southern Arizona district, causing flooding, Frandsen said.”They
“More than half the claims are from water intrusion,” Frandsen weren’t prepared for it,” he said. “You’ve got to keep the heat on.”
said, which can lead to mold. They average about 56 a year. He Theft and pilferage average 134 claims annually. Scarfo said
pointed out that if a school district could eliminate water damage it complacency can lead to this crime. Have precautions in place, he
could eliminate about half of its claims. said, by keeping things clean and orderly and placing surveillance
Direct claim costs include insurance, premiums, rentals, damage cameras in key areas. “Where there’s a will, there’s a way,” he said.
to other property, safety concerns and transportation, Frandsen A lot of smaller incidents aren’t even reported, Frandsen said.
said. Indirect costs could involve disruption, loss of space, personal Vandalism involves 81 claims annually, which often leads to arson.
artifacts, records, prevention steps, and media perception. Frandsen recommended establishing a good relationship with the
“Those are huge expenses,” Frandsen said. community and students. “Kids either hate the school, or they might
He told of an instance where school officials wanted to talk to the not love it, but they might respect it a little more,” he said. “If there’s a
media and be open about water damage. “When it was all over, a lot of big disconnect, kids don’t care about their school.”
those people lost their jobs, including the superintendent,” Frandsen said Mold, which has an average of 44 claims annually, generally comes
He noted that The Trust is here to help schools, but only if the from water. Scarfo recommended proper weather-proofing as a
schools contact The Trust. “We’re not here to run your district – we’re deterrent. He said most of the reports of mold are merely water stains.
just here to help,” he said. Lightning claims average 33 a year. Lightning rods can prevent
Scarfo asked where water comes from to cause flooding, not counting potential damage to servers and other electronic equipment,
actual floods, which happen rarely. Responses from AASBO members Frandsen said.
included broken pipes, bad roof, water heaters and condensation. Settlement and sinking of structures average 10 claims. They are
Another water problem may involve fire sprinklers. “When the generally caused by water, coming off roofs. It could affect a building
monsoons come, we wonder, what are we going to find out?” he said. or a parking lot.
Regarding broken pipes, Scarfo said it’s not cost effective to replace Electrical and mechanical malfunction is rare, with only eight
all the pipes in all of the schools. If you find pipes that are suspect, he claims a year.
said, try to work replacement into your maintenance budget. Water Damage to vehicles results in an average of 53 claims a year, mostly
heaters should be checked quarterly, semi-annually or no longer than to buses and white vehicles. They involve collisions.
annually, Scarfo said. Frandsen recommended making sure drivers have a proper
Fire averages just 14 claims annually, but fire damage can be driver’s license and their own insurance.
significant, Scarfo said. He noted that fire departments can be pretty “If they’re not insured, why would you insure them?” he said.
destructive in putting out a fire and making sure it doesn’t spread. Claims can be prevented by inspecting and identifying problem
Sometimes damage from a fire can end up being water-related as well. areas, developing and implementing processes and procedures, and
Causes of fire stem from such things as vandalism, popcorn making addressing conditions in a timely manner.
and construction projects.
Allowing teachers to bring in refrigerators or microwave ovens David Frandsen can be reached at: frandsenconsulting@gmail.com or
could overload a system and become a fire hazard, Frandsen said. He (480) 415-5104.
suggested schools should have a policy regarding these appliances.
Hail results in six claims annually, while wind averages 64 claims, Vince Scarfo can be reached at: vscarfo@phoenixunion.org or (602)
Frandsen said. He recommended guards for roof-top A/C units to 764-1621.

18 THE EDGE | SUMMER 2019